02010nam a2200301 a 4500 1/51328 051115s2006 be u pdd 0 a0gre d 1016-8060 (print) 1725-3187 (online) ECFIN/REP/54606-EN 33209 GR-PeUP eng ΚΕΤ Αλφαβητική σειρά Hijzen, Alexander. Cross-border mergers & acquisitions and the role of trade costs / Hijzen A., Horg Holger, Manchin Miriam. Brussels- Belgium: European Comission: Directorate-General for Economic and Financial Affairs, 2006. 33 σ.: πιν. 30 εκ. European Economy. Economic papers ; Economic Papers Cross-border mergers and acquisitions (M&As) have increased dramatically over the last two decades. This paper analyses the role of trade costs in explaining the increase in both the number and the value of cross-border mergers and acquisitions. In particular, we distinguish horizontal and non-horizontal M&As and investigate whether distance and trade policy barriers affect these two types of mergers differently. We analyse this question using industry data for 23 OECD countries for the period 1990-2001. Our findings suggest that while in the aggregate trade costs affect cross-border merger activity negatively its impact differs importantly across horizontal and non-horizontal mergers. The impact of trade costs is less negative for horizontal mergers, which is consistent with the tariff-jumping argument. Horg, Holger. Manchin, Miriam. European Commission : Directorate-General for Economic and Financial Affairs. Economic Papers February 2006, No 242. European Economy. Economic papers ; 242. INST UNIPILB KET 20090310 EEEP 242 EEEP 242 NOLOAN 23 1 http://ec.europa.eu/economy_finance/publications/publication_summary829_en.htm